Tupperware's Insider Selling Keeps This Analyst On The Sidelines

Piper Jaffray said the recent insider sale from Tupperware Brands Corporation (NYSE: TUP)'s CEO raises succession questions and is keeping the brokerage on the sidelines.

In late July, CEO and Chairman E.V. "Rick" Goings sold 150,000 shares of common stock, amounting to nearly $9.4 million. However, the details nor the purpose for the sale were disclosed. Goings has 54,456 shares remaining, totaling roughly $3.4 million).

"We note this sale as particularly significant because it is the first time during Mr. Goings' 19 year tenure as Chairman & CEO where he has sold more than 50 percent of his overall stake. We note that Mr. Goings will be 71 this year and understand succession at the helm is an increasing possibility," analyst Stephanie Wissink wrote in a note.

Related Link: SunTrust Analysts Hopeful Tupperware Has Turned A Corner

In addition, Wissink reiterated her Neutral rating and $61 price target on the stock citing global macro headwinds.

"While we favor the company's holistic approach to growth and cost mitigation and believe ample opportunity exists particularly within emerging markets, we remain on the sidelines due to the company's significant exposure to intensifying global macroeconomic headwinds and variability in direct selling cadence Q/Q," Wissink elaborated.

In addition, the analyst's third quarter and FY16 EPS estimate each move a $0.01 lower to $0.78 and $4.29 respectively, after she updated her forex assumptions. Forex is key for Tupperware, which generates about 80 percent of its sales outside the United States.

At time of writing, shares of Tupperware were up 0.76 percent to $62.16.